Merit pay remains a national priority item for encouraging school improvement. Still, alternative plans for attracting and retaining superior educators are emerging from many districts. This study examines salary programs, incentive plans, and staffing patterns for assistance in developing the Tyler, Texas, district action plan. Literature shows that faulty evaluation procedures (entirely input-oriented) weaken merit pay's viability; additionally, a task force has concluded that merit pay is only one step in improvement. Teacher and administrator unions have called for certain guidelines for merit plans, and plans from 17 states have been scrutinized for factors contributing to success or failure. These plans are outlined and categorized by program design, including merit pay by increment and extra pay for extra duties. Teachers in Garland, Texas, for instance, may teach short courses during June or teach summer school in the morning. Questions about merit pay's future nonetheless remain; generally it is suggested that specific preconditions must be met if it is to succeed. Meanwhile, policymakers should heed recommendations in a number of areas. (KS)